KWAME SARPONG vs KOFI KRAH MENSAH
2016
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP JUSTICE GEORGE BUADI J.
Areas of Law
- Contract Law
- Evidence Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The plaintiff, having lent GHc60,000 to the defendant who defaulted on repayment, filed a suit for the recovery of GHc105,900 plus interest and costs. The trial focused on whether the loan was taken personally by the defendant or on behalf of his company. Despite the defendant's claim that he acted on behalf of his company, the court found him personally liable based on signed agreements and past conduct. The court ruled in favor of the plaintiff, ordering the defendant to pay the outstanding amount along with interest and legal costs.
1 Background
The parties in this suit are good old time friends that date back from their university days in 1964. Based ostensibly on this friendship, plaintiff’s claim is that in 1 November 2008 defendant personally sought and obtained from him an amount of GHc60, 000 as financial assistance to resuscitate his teak business in his company.
The transaction was covered by a document, but plaintiff says the contents were not his original intention and that raised protest, but had to sign the document upon assurances by defendant.
Plaintiff caused subsequent two agreements to be made with defendant based on the original loan transaction, which varied and substituted new terms after defendant’s default of repayment on each of the agreement.
Upon failure to repay the loan on demand based on the last agreement, plaintiff resorted to the court by issuing writ of summons directed at defendant for the following reliefs:
a. The payment of the sum of GHc105, 900. 00 being the outstanding balance owed the plaintiff as at 30th September, 2012 for the loan agreement
b. Interest on the above sum at the bank rate per annum from 1st December, 2009 till date of final payment
c. Cost.
2 Defendant’s case
Defendant does not deny signing three loan agreements with plaintiff, and receiving from plaintiff GH¢60, 000 as financial assistance in 1 November 2008. Neither does he deny or dispute that repayment of the loan were to be made “in full in one balloon installment …” at the end of six months by 31 May 2009 at the exigible 27% interest per annum payable monthly or in arrears as they fall due.
His defence mainly is that plaintiff lent the sum to him not personally, but rather to his company Messrs Pa-Bredi Food Production and Plantation Limited (the company), of which he (defendant) at all material times was the managing director, and that he executed the initial agreement on the loan and the subsequent two for and on behalf of the company.
He denies therefore taking personal loan from plaintiff, contending that at all material times during the execution of the loan transaction, he was acting for and on behalf of the company.
Defendant tendered in evidence a written agreement the parties executed on the initial loan transaction (Exhibit ‘D1’) attached to his witness statement.
The parties appeared to have executed Exhibit D1 in January 2009, about two to three months after payment and receipt of the loan amount.
Defendant clearly signed Exhibit D1 as ‘borrower’ f